The Coase Theorem works because the negotiation
A. makes neither party better off.
B. makes both parties better off.
C. makes the party with the property rights better off.
D. makes both parties equally better off.
Answer: B
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The social cost of cutting trees for firewood in a government forest is
A) the increased likelihood of flooding as more trees are cut. B) opportunity cost to the individual of cutting the wood. C) the increased likelihood of flooding as more trees are cut plus the private cost of cutting the trees. D) the marginal costs of cutting the last tree.
A positive consumption externality occurs when;
a. When jack receives a benefit from john's consumption of a certain good b. When jack receives personal benefit from his own consumption of a certain good c. When jack benefits exceed johns benefits wo............ d. When jack consumes of a good is not beneficial to john
Suppose you observe an increase in the equilibrium price of coffee and a decrease in the equilibrium quantity of coffee. Of the options listed below, this is most consistent with:
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